Gas consumers in Pakistan, particularly in the regions served by Sui Northern Gas Pipeline Limited (SNGPL), are bracing for a potential shock as the company seeks a staggering 147% increase in gas prices for the upcoming fiscal year. This move, if approved, could significantly impact inflation rates and put added strain on already struggling segments of society.
SNGPL, which caters to over 7.22 million consumers in North Central Pakistan, mainly Punjab, Khyber Pakhtunkhwa, and Azad Jammu and Kashmir, is facing a projected revenue shortfall of Rs189.18 billion. The proposed hike is slated to come into effect from July 1, 2024, aiming to raise the average gas price to Rs4,446.89 per Metric Million British Thermal Unit (mmbtu), marking an increase of Rs2,646.18 per mmbtu.
The company justifies this surge by citing previous year’s shortfalls in the natural gas business and asserts a cost of service for regasified liquefied natural gas (RLNG) at Rs325.08 per mmbtu for the same period.
The matter is under scrutiny by the Oil and Gas Regulatory Authority (Ogra), which is conducting public hearings to gather feedback. After a session in Lahore, another hearing is scheduled in Peshawar on March 27, allowing stakeholders, consumers, and the general public to voice their concerns before Ogra makes a decision.
Meanwhile, Sui Southern Gas Company (SSGC) has also petitioned for a price increase, advocating for a raise of Rs274.40 per mmbtu to cover its projected revenue shortfall of Rs79.63 billion. The SSGC proposes an average gas price of Rs1,740.80 per mmbtu.
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